The ‘Father of ETFs’ Warns About the Dangers of Leveraged Funds

Jim Ross, known as one of the fathers of exchange-traded funds, says leveraged ETFs aren’t a viable long-term investment vehicle, and his company, State Street Global Advisors, will never sell them.

Ross, who was part of the team that designed the first U.S. ETF, the SPDR S&P 500, at State Street in 1993, says securities that offer souped-up returns are just too dangerous for the average person.